Hype for the 2017 Federal Budget is officially upon us, and Treasurer ScoMo (Scott Morrison) is nothing but smiles as he prepares to launch his second budget amid a national debate over housing affordability and ‘fairness’.
With so many issues swirling around the budget announcement we’ve focused in on some of the Australians most likely to be impacted next Tuesday night.
The news isn’t so great for uni students, with the government foreshadowing some major changes to higher education. From July next year, graduates will be required to start paying off their HELP debts at a much lower income – $42,000 compared to the current minimum threshold which is just shy of $55,000. Future students will also feel the sting, with the cost of fees set to rise by 7.5% by 2021.
Budget Tip: Students don’t need any more motivation to scrimp and save, but with an increase in fees a real possibility it may be worth finding other ways to tighten your belt. Check out these ten student-specific savings tips to get started.
If there’s one topic that’s dominated the Australian media landscape in 2017 it’s been housing affordability, and Scott Morrison has run hot and cold about any potential budget measures that will help combat the housing crisis.
The most recent consensus seems to be that the government is unlikely to introduce anything that will hit investors too hard, with changes to negative gearing particularly unlikely. However, reports are suggesting that the government could set its sights on foreign investors through a “ghost house tax” which would charge a levy as high as $5,000 on unoccupied properties.
First home buyers
With the proposal for first home buyers to be able to dip into their superannuation to fund a deposit seemingly dead in the water, the government has apparently moved towards a different measure to make housing more attainable for young Aussies which will be outlined in the budget.
Young first home buyers will allegedly be able to allocate some of their pre-tax income into a savings account – potentially reducing their tax bills and incentivising savings for a first home at the same time.
Budget Tip: If ScoMo does in fact conjure up a policy to help out first home buyers you’ll probably have a tonne of questions about buying your first home. Thankfully you won’t be gazing into a crystal ball for answers with our comprehensive first time buyer guides.
Small business owners
Businesses with an annual turnover of less than $10 million were some of the biggest winners of the 2016 Federal Budget, with changes (passed in April this year) ensuring a reduction in the corporate tax rate to 27.5%. Next Tuesday’s budget is likely to continue the government’s long term plan for lower corporate tax rates across all levels of business.
Doctors (and Patients)
A range of measures aimed at saving close to $2 billion over five years are set to be announced in next week’s budget, the biggest of which is the government’s plan to change default prescriptions from “big name brands” to generic drugs.
Doctors will still be able to prescribe big name brands to their patients under the new system, however will need to “opt out” of the default generic brand. According to the Health Minister Greg Hunt any savings would be reinvested in the Pharmaceutical Benefits Scheme.
If all the Federal Budget chatter has inspired you to think about your own budget then we can give you a hand getting started. Check out our budget calculator to find some savings of your own, or head on over to the Mozo savings hub for a range of top rate savings products!